The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-05-15
THE PACIFIC ROADS.
Some of Gould's Financiering
Schemes Unveiled.
REASONS FOR REMEMBERING
Henry Willard on the Stand = Dis
gusted with the Gould Bargains
Tho Scheme Worked
That Investigation.

NEW YORK, May 14.-Before the Pa
cific Railroad Commission to-day, Ch
w. Hasseer. in 1879 and 1880, a
member of the firm of Hasseer Sc Co.,
brokers at No Z, Wall Street. testi-
fed that he was interested in the reor-
ganization of the st. Joseph & Denver,
and was familiar with its earnings. Re-
ports we're being made at his Office
weekly in the year 1873. There was bal
ance of few hundred dollars after paw
ing operating expenses and taxes. had
transactions with Jay Gould with refer
ence to securities of the Kansas & Ne
braska aud st. Joseph & Western in
1878. Mr.. Gould offered 10 cents and
later 20 cents, but l thought il fair
gamble to hold them. Early in 1879
Gould said he could take all of the
bonds with trimmings for 40 cents, and
his proposition was accepted. sold
$l50,000 of them and acted as agent for
the other bondholders in their delivery.
think the whole amount must have
been $250,00. have
REASON FOR REMEMBERING
these tran: actions, for we were dis
gusted with our bargains when we
found these securities advancing in
price so rapidly after we had parted
with them.
Mr. Henry Willard. one of the re-
celvers of the Kansas Pacific, testified !:
II represented the bono holders of the
Kansas Pacific in the pool, but had no
personal interest, though my name ap-
peared as the holder of 10000 shares.
You will see that my signature does
not appear. Mr.. Gould purchased three
st. Louis holders at the pool price.
remember this, because they were
so Disguised when the securities began
to rise in the market so soon
after they had disposed of them.
The price was 12Hc. for the stocks.
think the gross earnings of the Kan
sas Pacific and Denver Pacific during
my receiyership was little more than
$1,000 900. When l took charge it was
in a wrecked condition, no money
being put into the repair of the road.
In fact, it earned about half of its fixed
charges. / am convinced that the con-
solidation Of the Union and Kansas
Pacific was an advantageous arrange
ment for the latter company to be taken
under the wings of the former, but as
far as to its desirability for the Union
Pacific, l am not prepared to state.
NEVER HELD A SHARE
of Union Pacific securities, and con-
sequently had no interest in it; but
know the consolidation was of great
advantage to the Kansas Pacific. The
terminal competition between the lines
was an element out of the strength OF
both.
The commission adjourned after the
examination of Willard to Tuesday.
The printed report of the chief ac-
countant, Richard F. Stevens, adopted
and approved by the commission in
executive session, May 9th, gives tab
ulated statement of the information re.
quired by the act of Congress, and for
the purpose of obtaining such informa-
ton suggests the employment of two
accountants, one each to prepare a
statement of
THE FINANCIAL CONDITION OF THE UNION
PACIFIC
and Central Pacifi to the present time,
these accountants to employ assistants !;
also the employment Immediately of
two accountants at Boston, two at San
Francisco, and one at WASHINGTON, with
two clerks at Boston and like num-
Der at San Francisco.